OmniRetail Secures $20M to Transform B2B E-commerce in Africa
OmniRetail raises $20 million in Series A funding to scale its B2B e-commerce platform across West Africa, focusing on embedded finance and optimizing supply chains.
OmniRetail has recently raised $20 million in a Series A funding round, a significant boost that underscores the growing interest in transforming the B2B e-commerce landscape in Africa. This funding comes at a pivotal time as the startup seeks to enhance its operations across Nigeria, Ghana, and Ivory Coast, leveraging technology to address the challenges faced by informal retailers. The round was co-led by Norfund and Timon Capital, with notable participation from other investors, bringing OmniRetail’s total funding to $38 million since its inception in 2019.
The company’s innovative approach to digitizing order management for over 150,000 informal retailers is what sets it apart in a competitive market. OmniRetail's app allows retailers to manage inventory, access working capital, and make digital payments seamlessly. CEO Deepankar Rustagi emphasized that the startup's focus on embedded finance not only facilitates transactions but also enhances financial inclusion in regions traditionally underserved by banking institutions.
Moreover, OmniRetail's asset-light strategy has enabled it to achieve profitability, becoming EBITDA positive in 2023 and net profitable in 2024. Such financial acumen is essential in an environment where many startups struggle to maintain profitability amid rising operational costs. The company processed more than $1.3 trillion in transactions last year, showcasing the substantial demand for its services.
With the new funding, OmniRetail plans to expand its retailer base and diversify its product offerings, including personal care and home care categories. This strategic expansion aims to optimize supply chains further and enhance financial services, positioning OmniRetail as a leader in the B2B e-commerce space in Africa.
The implications of this funding round extend beyond just financial metrics; it reflects a growing recognition of the potential in Africa’s informal retail sector, which is often overlooked. Rustagi's vision of reshaping the retail landscape through technology and embedded finance resonates with the need for innovative solutions to age-old challenges in the region’s supply chains. The success of OmniRetail could pave the way for other startups in Africa to rethink their business models and explore scalable, tech-driven solutions to meet local demands.